Intel’s chipmaking business lost billions last year

Intel’s chipmaking business lost billions last year

Past outsourcing decisions put the company in this spot, but will break even by 2027, says Intel CEO.

Intel’s chip-making division accumulated $7 billion in operating losses in 2023, Reuters reported on Tuesday, increasing from $5.2 billion 2022. It made $18.9 billion in revenue in 2023, down 31 percent from the $27.49 billion the year prior.

However, CEO Pat Gelsinger’s told investors, the total loss isn’t a total surprise. Gelsinger says these numbers are the result of Intel’s past mistakes catching up with its foundry business, causing them to outsource about 30 percent of all its wafer production to other foundries, like TSMC, one of Intel’s biggest competitors currently.

But now Intel has invested in using extreme ultraviolet (EUV) machines from Dutch firm ASML, when previously it decided not to. Gelsinger expects the cost-effectiveness of those tools to help Intel break even by 2027. ASML also says on its website that its technology makes scaling the mass production of computer chips more affordable for chip foundries like Intel.

It sounds like Intel may have made the right call just in time. Intel plans to spend around $100 billion building or expanding its chip foundries in four states. It also will receive up to $8.5 billion in funding from the U.S. government, as part of the new CHIPS Act. But for everything to go according to plan, Intel will need to persuade companies to use its chipmaking service. Microsoft recently signed on as a foundry customer, but it’s unclear how many more companies Intel will need to break even (as planned) in the next few years.

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The Road to Quantum Supremacy

The Road to Quantum Supremacy

Quantum bits, or qubits, are inherently prone to error — this susceptibility is described as being “noisy.” Creating logical qubits is one way of solving this.

So scientists have created a set of “logical qubits” that have error rates 800 times lower than physical qubits — paving the way for useful, fault-tolerant quantum computers in the near future.

Quantum bits, or qubits, are inherently prone to error — this susceptibility is described as being “noisy.” Creating logical qubits is one way of solving this. These are a collection of physical qubits that are tied through quantum entanglement — and they reduce errors by storing the same information in different places. This spreads out the possible points of failure while a calculation is underway.

In a new paper published April 2 to the preprint server arXiv, scientists demonstrated they could perform experiments on four logical qubits made using 30 of the 32 physical qubits in the H2 quantum processor made by Quantinuum, a quantum computing company.

The team, made up of researchers from Quantinuum and Microsoft, ran 14,000 experiments on a basic quantum circuit made up of the logical qubits without generating any errors that weren’t detected and corrected.

They hope this technology can be integrated into a future hybrid supercomputer powered by 100 reliable logical qubits — which would be enough to provide organizations with a scientific advantage, Microsoft’s EVP for strategic missions and technologies said April 3 in a blog entry.

1st problems with scaling quantum computers, beyond the hardware required to run them, is the extremely high error rates of qubits. Bits in conventional computing have an error rate of 1 in 1 billion billion.

When running experiments on a quantum circuit, however, physical qubits have an error rate of approximately 1 in 100, according to Microsoft. The new logical qubits, by comparison, have an error rate of just 1 in 100,000.

The researchers achieved this improvement by applying a technique called “active syndrome extraction” to Quantinuum’s ion-trap qubits and quantum computing architecture, Quantinuum representatives said in a statement.

This technique involves diagnosing and correcting errors while calculations are underway without destroying logical qubits. Because qubits process calculations while they’re in a state of quantum superposition between two binary states (representing the 1 and 0 of computing data), you cannot view them without causing decoherence, in which the superposition collapses.

Active syndrome extraction is a process derived from a paper published in September 2018 and works because of the way this kind of logical qubit was composed. A logical qubit includes a small number of physical qubits — referred to as the ancillary code block — that store no data for calculations, but into which the logical qubit’s information is temporarily stored, so it can be seen. By applying this technique, the scientists were able to peek within the block then identify and correct errors as they appeared, without disrupting calculations.

“Breakthroughs in quantum error correction and fault tolerance are important for realizing the long-term value of quantum computing for scientific discovery and energy security,” Travis Humble, director of the Quantum Science Center at Oak Ridge National Laboratory, who was not involved in the current research, said in a statement. “Results like these enable continued development of quantum computing systems for research and development.”

Microsoft representatives argue this research represented a shift to what they call “Level 2” quantum computing, in which scientists have low-error quantum hardware that can be scaled up to solve problems reliably. Quantum computers today are, by comparison, described as “noisy intermediate-scale quantum” (NISQ) machines.

The aim is to get to Level 3 machines and to achieve so-called “quantum supremacy” — that is, to reach the point at which quantum computers will be more powerful and capable than the fastest supercomputers.

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CIOs rethinking their cloud strategies after Crowdstrike Failure

CIOs rethinking their cloud strategies after Crowdstrike Failure

CIOs are now seriously considering ways to avoid single points of failure and are re-evaluating their cloud strategies to prevent any future ‘blue screen incidents.

The disruption caused by the CrowdStrike software glitch, leading to a global outage of Windows systems, has sent shockwaves through the IT world. CIOs, are now reminded of the inherent risks associated with over-reliance on a single vendor, especially in the cloud.

The incident, saw IT systems crashing and displaying the “blue screen of death (BSOD),” exposed the vulnerabilities of heavily cloud-dependent infrastructures.

While it is being resolved, the potential for catastrophic consequences when a critical security component fails remains. CIOs are now forced to question the resilience of their cloud environments and explore new strategies.

Reevaluating cloud dependencies

Abhishek Gupta, CIO at DishTV is quoting as saying, “When an issue of such magnitude happens and causes such a big disruption, it is important and necessary to revisit your existing beliefs, decisions, and tradeoffs that went into arriving at the current architecture,”. “The outcome of the review may still be the same decision but necessary to review,” Gupta said, adding that DishTV is already re-evaluating its cloud strategy in a phased manner after the Crowdstrike incident.

Saurabh Gugnani, Director and Head of CyberDefence, IAM, and Application Security at Netherlands-headquartered TMF Group, added that a diversified approach to cloud strategies could mitigate such risks. “Yes, they [enterprises] should revisit cloud strategies. It has to be a mix of all the available solutions.”

A Few organizations have already started taking the leap of faith.

Shivkumar Borade, founder and CMD of Mytek Innovations, a victim of the BSOD effect stated “In response to recent disruptions affecting our critical operations, we have proactively updated our Business Continuity Plan to address unexpected downtimes and minimize the impact on productivity and service delivery,”. “Our revised plan includes enhanced communication management, featuring multiple layers to ensure all employees are well-informed about potential issues and their resolution.”

The company’s internal communication was significantly disrupted as its entire network, including Outlook, Teams, and SharePoint, is hosted on Microsoft 365.

“However, our in-house developed application remained unaffected due to GoDaddy’s use of its own hosting infrastructure,” said Borade. “We did experience issues with a few API integrations linked to the Azure platform, which were non-functional for the entire day. This disruption led to interrupted services for both our clients and users.”

Wake-up call for CIOs

Many CIO’s are primarily concerned with vendor lock-in. The reliance on a single cloud provider, as demonstrated by the CrowdStrike incident, creates a single point of failure. If a critical service from that provider is disrupted, it can have far-reaching implications for an organization. To mitigate this risk, CIOs are likely to explore multicloud or hybrid cloud architectures, distributing workloads across multiple platforms.

Allie Mellen, a principal analyst at Forrester, emphasized the critical nature of reliable tools and services in the face of cyber threats.

“Reliability of the tools and services cybersecurity teams use is critical in the face of cyberattacks,” Mellen stated. “An incident like this questions that reliability. This will undoubtedly raise questions and concerns from executives about how to ensure the reliability of enterprise systems, especially with technology as integrated into day-to-day operations as cybersecurity software.”

The incident exposed the fragility of cloud-dependent systems where a single point of failure can have cascading effects across an organization. Sunil Varkey, senior security professional and advisor at Beagle Security, noted, “Trust between cloud and security vendors is now questioned. This breach of confidence is likely to drive a higher emphasis on agentless solutions, which can offer enhanced security without the vulnerabilities associated with traditional agents.”

It is said to be one of the worst cybersecurity events considering the magnitude of the impact. The CrowdStrike incident affected computers running Microsoft Windows across various sectors, including airlines, banks, retailers, brokerage houses, media companies, and railways. The travel sector was notably impacted, with airlines and airports in Germany, France, the Netherlands, the UK, the US, Australia, China, Japan, India, Singapore, and Taiwan facing significant issues with check-in and ticketing systems, leading to flight delays and airport chaos.

Microsoft said around 8.5 million Windows computers were affected.

The impact was so much that SpaceX and Tesla CEO Elon Musk had to delete CrowdStrike from all its systems.

Enhanced risk management practices

The incident has highlighted the need for improved risk management practices. Enhanced due diligence, rigorous testing of updates, and phased rollouts are now critical.

“This incident serves as a wake-up call, emphasizing the need for continuous adaptation and improvement in cybersecurity practices across the industry,” said Gaurav Ranade, CTO at RAH Infotech.

D.R. Goyal, senior architect at Rakuten Symphony, advocated for a mechanism to test updates with select users before a full release: “It should have a mechanism to test with certain organizations with a set of users before releasing to the entire community and user base to reduce the impact.”

As the digital landscape evolves, ensuring the resilience of cloud-based systems is paramount. Ashis Guha, founder of An Idea Global Innovations, highlighted broader implications: “The incident has broader implications for the global economy; longer downtimes and recovery times will impact productivity and economics.”

Industry experts recommend several strategies for future preparedness, including phased rollouts, comprehensive testing, and robust backup systems.

Siddharth Ugrankar, Co-founder of Blockchain firm Qila, suggested that a phased deployment and thorough testing of updates could have mitigated the impact: “If CrowdStrike had deployed the update in a phased manner, the impact would have been far less.”

Moyukh Goswami, CTO at Nuvepro Enterprises believes aiming to prevent issues like the CrowdStrike debacle IT leaders should bolster their update management while enhancing testing protocols across diverse environments and implementing rigorous risk assessments, in addition to fortifying change management processes with robust governance frameworks, said

Goswami added “Strengthening monitoring capabilities, refining incident response plans tailored to update failures, and fostering proactive vendor relationships are crucial,” .

The CrowdStrike incident highlights the need for CIOs to revisit and fortify their cloud strategies. By implementing robust risk management practices, enhancing security measures, and diversifying cloud solutions, organizations can better protect themselves against future disruptions.

As the industry deals with the aftermath of this event, the focus should now to building resilient, adaptable, and well-tested cloud strategies to manage an ever increasing complex digital landscape.

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The Merger of Quantum Computing and AI

The Merger of Quantum Computing and AI

The integration of artificial intelligence (AI) with quantum computing has the potential to revolutionize multiple industries by unlocking computational power that far surpasses classical computing capabilities. Quantum computing can process enormous datasets and solve complex optimization problems at unprecedented speeds, making AI applications more robust and capable in areas such as financial modeling, molecular simulation, and supply chain optimization. This fusion of technologies is expected to dramatically improve AI’s ability to learn, adapt, and solve problems that are currently insurmountable with classical computers.

In the financial sector, for instance, quantum-enhanced AI could revolutionize risk modeling and portfolio optimization, allowing for more accurate simulations in highly interconnected global markets. Traditional AI methods struggle with these problems due to their complexity, but quantum computing’s ability to explore vast solution spaces simultaneously could lead to breakthroughs in this field.

Moreover, in industries like drug discovery, quantum AI is expected to accelerate the development of new medications by simulating molecular interactions with unprecedented precision. This could reduce the time and costs associated with understanding how drugs interact with biological systems.

However, we are still in the “noisy intermediate-scale quantum” (NISQ) era, where quantum computers face significant limitations due to noise and instability in quantum states. To address these challenges, hybrid systems combining quantum and classical computing systems are being explored to tackle complex problems by distributing computational tasks according to the strengths of each type of machine.

Overall, the convergence of AI and quantum computing holds the promise of transforming industries ranging from finance to healthcare, but its full impact will depend on further technological advances in both fields.

The 5 Major Impacts of Machine Learning Models on Data Security

The 5 Major Impacts of Machine Learning Models on Data Security

Machine learning (ML) is revolutionizing data security, offering new methods to detect, prevent, and respond to cyber threats. Its capacity to learn from vast datasets and adapt in real-time gives it a strategic advantage in safeguarding information systems. However, as ML grows more integrated into security frameworks, it also introduces new vulnerabilities that can be exploited. This article explores five significant impacts of machine learning models on data security, supported by recent developments in the field.

1. Advanced Threat Detection

Machine learning models excel at identifying anomalies and potential threats in real-time. Traditional security systems rely on predefined rules, which often miss new or sophisticated attacks. However, ML-based systems can recognize subtle, suspicious behaviors that deviate from established patterns and flag them as potential threats.

Proof Source: A report by MIT’s Computer Science and Artificial Intelligence Lab found that deep learning models can detect cyber attacks with an accuracy of 85% to 99% by learning from traffic patterns. These models identified attacks such as distributed denial-of-service (DDoS) and malware more accurately than traditional methods .

ML systems adapt over time, enabling them to stay ahead of novel attack techniques. As hackers create increasingly sophisticated malware, the ability to dynamically learn from new data is a critical advantage for security teams.

2. Automated Incident Response

ML models not only detect threats but also automate response actions, which is crucial in minimizing damage during an attack. Once a threat is identified, machine learning systems can immediately initiate actions such as isolating affected systems, quarantining files, or alerting security personnel.

Proof Source: In 2023, Microsoft introduced an AI-driven system integrated with its security solutions to enable automatic containment of ransomware threats in less than 20 minutes. This significantly reduces the time needed for a human response and can prevent further damage .

The ability to automatically contain breaches limits their spread, allowing faster recovery. This is especially vital in cloud environments and large-scale enterprises where the volume of data traffic makes human intervention slower.

3. Improved Identity and Access Management

Managing identities and access to sensitive data is a critical aspect of cybersecurity. Machine learning enhances traditional identity and access management (IAM) systems by learning user behaviors and creating baseline profiles for users and devices. Deviations from these profiles can trigger alerts for suspicious activity, reducing unauthorized access risks.

Proof Source: A study published in the Journal of Cybersecurity showed that ML-based IAM systems significantly reduced false positives in access control systems while increasing the detection of credential-based attacks by 32%. This demonstrates the efficacy of ML in improving both security and user experience in authentication processes .

This approach ensures tighter security in systems, particularly those with numerous users, such as enterprise networks or financial institutions. ML can help flag anomalies in access requests based on behavioral patterns rather than simple password authentication.

4. Vulnerability Management and Patch Prioritization

One of the biggest challenges in data security is identifying and patching vulnerabilities before they can be exploited. Machine learning models are increasingly used to predict which vulnerabilities pose the greatest risks, allowing security teams to prioritize patches accordingly.

Proof Source: In a study by Tenable, ML models predicted which vulnerabilities were likely to be exploited in the wild with 85% accuracy, helping organizations focus on the most critical issues. This method has led to faster and more efficient vulnerability management, reducing the attack surface across many industries .

Machine learning systems can process large volumes of data from security reports, threat intelligence feeds, and software configurations to determine the likelihood of an exploit. This enables more proactive security measures by focusing on the most critical threats.

5. Adversarial Machine Learning and Its Risks

While machine learning models provide significant benefits, they also introduce new vulnerabilities. Adversarial machine learning, where attackers manipulate ML models by subtly altering input data, is emerging as a new threat. These attacks can cause models to make incorrect decisions, such as misclassifying malware as benign or failing to detect phishing attempts.

Proof Source: Research by the University of California, Berkeley highlighted several successful adversarial attacks on leading image recognition systems used in security tools. These attacks demonstrated that even small manipulations of data could deceive models into making erroneous predictions .

The need for securing ML models from adversarial attacks is becoming critical as the technology proliferates across various security applications. Organizations must implement strategies such as adversarial training or robust ML testing to prevent models from being exploited.

Conclusion

Machine learning models have the potential to vastly improve data security by enabling advanced threat detection, automating incident response, enhancing identity and access management, and optimizing vulnerability management. However, as these models become more widespread, they also introduce new attack vectors, such as adversarial machine learning. The ability to balance the benefits and risks of ML will be key to securing the digital infrastructure of the future.

Machine learning is set to become a cornerstone of cybersecurity, but organizations must remain vigilant about the evolving landscape of both opportunities and threats it presents. The integration of these technologies into everyday security practices will continue to reshape the defense mechanisms that protect sensitive data globally.

AI Leading Next Generation of Defense.

AI Leading Next Generation of Defense.

“These can eliminate costly aerial threats or be reused at minimal expense.”

(Web Desk) – The US Department of Defense (DoD) has awarded Anduril Industries, a defense technology and weapons manufacturer based in Southern California, a $250 million contract to provide advanced air defense capabilities across services.

As a part of this contract, Anduril will deliver more than 500 Roadrunner-Ms and additional Pulsar electronic warfare capabilities.

The capabilities will address the growing threat of unmanned aerial systems (UAS) attacks against the US forces.

Deliveries will begin in the fourth quarter of 2024 and continue through the end of 2025, according to Anduril.

Anduril’s Roadrunner system, a high-explosive vertical takeoff and landing (VTOL) interceptor unveiled last year, has been developed to rapidly intercept and neutralize larger UAS threats with unmatched speed, maneuverability, and cost efficiency.

Paired with Anduril’s Pulsar family of AI-enabled electronic warfare systems, the US military will deploy this new generation of UAS defense capability to operational sites in priority regions where US forces face significant UAS threats, further enhancing US air defense capabilities at the tactical edge.

The team deployed Roadrunner for combat evaluation starting in January 2024, and Pulsar has been operational across multiple regions since August 2023.

Roadrunner went from an idea to a combat-validated and fieldable solution in less than two years, much faster than most traditional contractor timelines.

As the world’s first recoverable explosive weapon, Roadrunner exemplifies the next-generation capability required to confront the increasingly complex threat landscape.

Roadrunner is a modular, twin-jet powered autonomous air vehicle with extraordinary performance at low cost.

The vertical takeoff and landing capability gives Roadrunner the flexibility to launch from and return to any location rapidly, pairing high subsonic speed with exceptional agility and stability.

Designers have crafted Roadrunner to be future-proof. The modular payload system can carry a variety of payloads to accomplish a broad set of missions and can be constantly updated to meet tomorrow’s threats.

Roadrunner-M is a high-explosive interceptor variant of Roadrunner for ground-based air defense that can rapidly identify, intercept, and destroy an array of aerial threats that are up to 100 times more expensive or be recovered and reused at near-zero cost.

Malicious actors are increasingly using state-owned and commercially available drone technology to threaten the personnel, infrastructure, and assets of the United States and its allies around the world.

Anduril already provides a family of counter-UAS systems to protect against such threats, and Roadrunner-M is the newest addition to that family.

Roadrunner-M addresses threats that extend across legacy air defense echelons, combating adversary attempts to design around gaps in current air defense architectures.

Similar to traditional approaches to deter and defeat incoming aerial threats, such as scrambling expensive and airfield-dependent jets, Roadrunner-M can take off, follow, and intercept distant targets at the first hint of danger, giving operators more information and time to assess the target and rules of engagement.

If there is no need to destroy the target, Roadrunner-M can return to base and land at a pre-designated location for immediate refueling and reuse.

Roadrunner-M can swiftly destroy the target if it needs to be destroyed. Unlike legacy missile systems, you can reuse all craft launched but not consumed.

This radical shift in thinking allows large-scale defensive launches at extraordinarily low cost, increasing redundancy for a higher probability of lethality and enhancing the ability to engage many targets simultaneously.

Roadrunner-M’s performance capacity is far superior to competing air defense solutions, and it already has an overmatch capability against current and emerging threats.

Its employment approach significantly expands the decision-making options for the operator, which are currently limited.

Roadrunner-M innovations include faster launch and takeoff timing, three times the warhead payload capacity, ten times the one-way effective range, and three times more maneuverability in G force compared to similar offerings on the market.

A single operator can launch and supervise multiple Roadrunner or Roadrunner-M squadrons.

Roadrunner-M can be controlled by Lattice, Anduril’s AI-powered command-and-control software suite, or fully integrated into existing air defense radars, sensors, and architectures to provide immediately deployable capability.

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